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Could another coin dethrone Ethereum?
Key points
- The recent market crash has a widespread effect on the entire cryptocurrency market and can open up many investment opportunities.
- The utility offered by Ethereum makes it a difficult token to dethrone.
Ethereum, one of the biggest tokens in cryptocurrency, has seen another significant drop in value today, as the crypto market experiences a widespread reduction of share prices. The cryptocurrency market has always been volatile; shifting constantly from moment-to-moment. Could the market’s biggest players shift around as well? As the value of ETH continues to fall, does it mean the end for the coin, or a great opportunity to jump in before an inevitable resurgence?
Crypto is a volatile market
A good thing to keep in mind for anyone committed to investing in cryptocurrency is that the crypto market is highly volatile, with prices rising and falling quickly. With the recent restrictions China placed on cryptocurrency transactions, the market is experiencing a crash in value. With more restrictions and regulations comes less demand for crypto, and consequently, a reduction in value for all types of cryptocurrencies. With a full market drop like we are seeing now, the value of nearly all coins plummets, not just a select few.
With this in mind, the only way ETH could be dethroned as the second-highest valued crypto would be for another currency to resist this market-wide effect. ETH is currently more valuable than its third-place competitor, Tether, by over $200 billion. It would take a significant jump for any other currency, as well as a significant drop for ETH, to dethrone ETH as a staple of the market.
Ethereum is a mainstay
There is a good reason why ETH is the second-highest valued cryptocurrency by a wide margin. Ethereum’s transactions are considerably more expedited than that of Bitcoin’s blockchain. Ethereum also offers more utility than Bitcoin, which is generally only used as a medium of value exchange, while the Ethereum blockchain is a platform with many purposes. Because of the variety of uses for ETH on the blockchain, this coin is likely not going anywhere unless an unforeseen catastrophic event knocks the Ethereum blockchain out of play. With a significant fall in the value of this token, now might be the best time to invest in ETH.
The bottom line
The cryptocurrency market is experiencing a far-reaching loss of value, but its value could rise again, as the use of cryptocurrency becomes increasingly desirable. The volatile cryptocurrency market is no stranger when it comes to big price movements in the most popular cryptocurrencies. The utility that ETH offers ensures it will not be dethroned easily. This makes right now a potentially profitable time to jump in on ETH. As always, you should do your own homework and make sure you don’t invest money you can’t afford to lose.
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